According to the Canada Mortgage and Housing Corporation (CMHC)’s 2025 Mortgage Consumer Survey, there has been a recent increase in first-time buyers entering the market, and they’re feeling more financially ready to become owners.
The survey revealed that it took first timers an average of 3.4 years to save for a down payment, down from the 4.2-year average reported last year. They also spent an average of 6.3 years in the rental market before making their first purchase, according to this year’s study.
Rule changes making an impact
The relatively high proportion of new entrants to the market is likely the result of new federal regulations and rule changes, lower interest rates, and lower housing prices compared to last year.
“I think a lot of this is due to the rule changes that happened on the insurer side with 30-year amortizations — the data from all three insurers is showing that a lot of their applications are falling in that bucket,” says Joe Jacobs, managing partner of Mortgage Connection. “That, combined with opening it up to people putting five or 10% down has certainly made qualifying—and ultimately the costs of home ownership—go down.”
Jacobs suspects fewer first-time buyers would say they were financially ready to purchase a home under the previous requirements and restrictions.
Gifts, co-signers, and inheritance are driving today’s housing market
First-time buyers have also grown increasingly reliant on external support and family assistance. According to the survey, 41% used a gift or inheritance to cover mortgage costs, up from 30% last year, with gifts averaging nearly $80,000.
“Over the last 10 years or so, the massive appreciation [in home values] has made it really difficult for first-time homebuyers to get into the market,” explains Bud Jorgenson, vice-president at TMG The Mortgage Group for the Prairie region. “At the same time, it’s created wealth for the people 50 and over—their parents.”
And it’s not just newcomers turning to family. The survey found that 20% of repeat buyers also received financial help through a gift or inheritance, with those contributions averaging a whopping $103,382.
Beyond financial gifts, Canadians are increasingly relying on other forms of support to enter the housing market.
More than half of first-time buyers, the survey found, purchased their homes with someone other than a spouse or romantic partner.
“That means more than half of the people that are buying in today’s market are actually getting a co-signer to help them, which would be a parent in 99% of cases,” Jorgenson says, adding that few first-time buyers can meet the stress test requirements on their own.
“I’m not exaggerating when I say that for just about every deal with a first-time homebuyer, there is some form of issue getting them qualified for the home that they’re looking for,” he adds. “It’s just more difficult than it’s ever been to get into a home right now, so people are looking for help with the down payment, or from parents to co-sign to provide additional income on the deal to make it qualify under that current ratio requirements.”
From renewal tsunami to refinancing wave
Though many feared a “renewal tsunami” in 2025—when 1.2 million borrowers from the ultra-low pandemic-era mortgage boom reached the end of their five-year terms—recent rate cuts have helped soften the impact.
“Luckily, over the last few months we have seen rates starting to soften, so the renewal cliff has likely been avoided,” says Clinton Wilkins, team leader at CENTUM Home Lenders Ltd. “But overall, consumers are renewing into higher interest rates, and they’re feeling the pinch.”
According to the CMHC survey, 20% of refinancers shortened their amortization periods, compared to just 10% of homebuyers—a difference that doesn’t surprise Wilkins.
“We’re seeing a lot of mortgage borrowers taking more percent in amortization,” he says. “One, because the rates are high, but then it’s also about the other dollars in their wallet that are getting stretched due to inflation.”
The CMHC survey results show that 28% of refinancers used the funds for home improvement, 22% to consolidate debt, and 14% to reduce their monthly mortgage payments.
“That’s a significant stat; historically, you don’t see that,” says Jacobs, referring to the share of refinancers using funds to cover mortgage costs. “That shows that cash flow and debt management is really top of mind for a lot of Canadians and homeowners right now.”
Renovation Nation
Canadians who aren’t using their home equity to reduce debt or monthly expenses are increasingly turning to renovations instead.
The study found that 66% of refinancers have completed renovations in the past three years, and 77% plan to do so within the next five. More broadly, 55% of Canadian homeowners have undertaken renovations during that time, with energy-efficient upgrades emerging as the most popular choice.
“They only have four times in the life of a 25-year mortgage to revisit it and pull-out equity,” Jorgenson explains. “If you bought a house and then lived in it and paid it off, you’d have four opportunities to do a refinance and pull out some of that equity and use it for home improvements, and with 1.2 million Canadians up for renewal this year, that’s what we’re seeing right now.”
Adding to the popularity of home improvement projects are also new incentives for energy efficient upgrades and secondary suite extensions, as well as the relatively challenging housing market, says Jacobs.
“Everyone’s more aware of utility costs, so it’s not surprising to me that we’re seeing that growth on the renovation side,” he explains. “There have also been a lot of municipalities offering incentives for secondary suites, so you’re seeing that type of renovation for sure, whether it’s a carriage house or a basement suite.”
Given the unique and increasingly complex market conditions facing first-time buyers, repeat purchasers, renewers, and refinancers,, Jacobs says Canadians need objective professional advice now more than ever.
“The conversation has to be a lot deeper to figure out what the needs and where the pain points are for consumer,” he says. “There’s bigger conversations that have to be had now, because people are still interested home ownership — that doesn’t seem to be going away — but they have a lot more questions, and brokers have an opportunity to offer that guidance.”
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Bud Jorgenson Canada Mortgage and Housing Corporation Clinton Wilkins CMHC CMHC consumer survey first-time homebuyers home renovations jared Lindzon joe jacobs mortgage consumer survey renewals
Last modified: May 23, 2025